Treasury MEC’s budget speech

LIMPOPO Treasury MEC Rob Tooley tabled his 2018/2019 budget speech amid slow economic growth, changing political landscape and renewed hope across the country following the election of Cyril Ramaphosa as the country’s new president. He said the economy of the province has managed to sustain a positive growth of 1.2 percent in 2017, which was a recovery from the 2016 negative growth rate of 1.6 percent. Limpopo’s provincial outlook looks positive moving towards 2020.

The provincial expenditure grows from R61.4 billion in 2017/18 to R65.3 billion in 2018/19 and further grows to R68.6 billion in 2019/20 and to R72.6 billion in 2020/21 financial years. The expenditure growth is 6.4 percent in 2018/19 and 5.9 percent in 2020/21. The 2018 MTEF budget is presented in times of economic distress which includes reductions to both the provincial fiscal framework and conditional grants.

The allocations per vote are as follows:

Vote 1: Office of the Premier

The Office of the Premier receives a budget allocation of R420.6 million in 2018/19, R437.2 million in 2019/20 and further increases to R461.3 million during 2020/21. The allocation increase by 6.3 percent in 2018/19. The funding includes allocation of R6.2 million for SMS Capacity Building, Provincial Customer Survey, Disaster Recovery Site management and Provincial Evaluation Plans.

Vote 2: Provincial Legislature

The Provincial Legislature has been allocated a budget of R360.9 million for 2018/19 financial year. Their budget increases to R378.6 million in 2019/20 and R399.4 million for the 2020/21 financial year. The allocation increase by 5.6 percent in 2018/19 and 5.5 percent in 2020/21. It includes the implementation of the ERP system, upgrading of security systems and an additional R2.0 million for programmes that promote taking the Legislature to the people.

Vote 3: Education

Education receives a budget allocation of R30.6 billion in 2018/19, R32.3 billion in 2019/20 and further increases to R34.2 billion during 2020/21. The allocation includes R2.3 billion for Conditional Grants and R565.9 million from own revenue in 2018/19 financial year. The allocation increase by 6.3 percent in 2018/19 and 5.9 percent over the MTEF. Through this allocation, the department will prioritise the provision of quality basic education which will include learner attainment programmes, school nutrition, scholar transport, delivery and maintenance of school infrastructure and appointment of qualified educators and administration personnel.

Vote 4: Agriculture

Agriculture has been allocated a budget of R1.9 billion in 2018/19 financial year to deliver its mandate of which R345.3 million is for Conditional Grants. The budget increases by 3.3 percent in 2018/19 which is below the CPI increase of 5.4 percent over the MTEF. The departmental allocation is reduced by R50 million in 2018/19 as a result of a reduction in personnel costs in the department. The department’s budget will be utilized for food security and farmer support programmes.

Vote 5: Provincial Treasury

The Provincial Treasury receives a budget allocation of R472.8 million in 2018/19, R492.2 million in 2019/20 and R499.3 million during 2020/21 financial year. The budget has negative growth of 0.4 percent in 2018/19 due to a once-off allocation in 2017/18. The allocation includes an amount of R24.9 million for Government Technical Advisory Centre (GTAC) project to enhance infrastructure delivery in the province.

Vote 6: Economic Development, Environment and Tourism

The Department of Economic Development is allocated a budget of R1.7 billion in 2018/19, of which R3.3 million is a Conditional Grant and R746.6 million is for transfers to Public Entities. The allocation increases by 11.0 percent in 2018/19 and 5.0 percent in 2020/21 financial year. The department is responsible for economic development in the province and the allocation includes an amount of R254.6 million for Special Economic Zones and the implementation of a broadband network infrastructure by Limpopo Economic Development Agency (LEDA). The funding also provides for upgrading of nature reserves and resorts as well as programs that are earmarked for job creation for the youth and promotion of SMME’s.

Vote 7: Health

The total allocation of the department is R19.5 billion in 2018/19 financial year. The budget allocation includes R2.7 billion for Conditional Grants and R495.4 million from own revenue. The allocation increases by 8.1 percent in 2018/19 and 6.0 percent in 2020/21 financial year. The allocation is increased by R1.1 billion over the MTEF period to subsidize the increased cost of medicines and medical supplies. This funding will be utilized to ensure that the department delivers quality, accessible and affordable health care to the people of Limpopo.

Vote 8: Transport

The budget allocated to the Department is R2.1 billion in 2018/19, of which R356.8 million is a conditional grant and R53.4 million is for transfer payments to the entity Gateway Airport Authority Limited (GAAL). The allocation is increasing by 7.3 percent in 2018/19 and 5.8 percent in 2020/21 financial year. The allocation includes an amount of R20 million for the refurbishment of traffic training colleges.

Vote 9: Public Works, Roads and Infrastructure

The Department receives a budget allocation of R3.1 billion in 2018/19, R3.2 billion in 2019/20 and R3.4 billion in 2020/21 financial years. The allocation has a negative growth of 0.6 percent in 2018/19 due to a once-off allocation in 2017/18 financial year. The allocation further includes R1.1 billion for conditional grants. The Department will transfer R988.9 million to Roads Agency Limpopo (RAL) for operational costs and roads maintenance and upgrading.

Vote 10: Community Safety

The Department of Community Safety receives a budget allocation of R109.7 million in 2018/19 financial year of which R2.0 million is for EPWP Incentives Grant. The budget increase by 5.8 percent in 2018/19 and 5.0 percent over the MTEF period. This funding will enable the department to deliver its mandate of intensifying the fight against crime and corruption through an integrated approach. This includes the provision of support to the Community Safety Forums and Community Policing Forums (CSP’s).

The Department is allocated budget of R2.6 billion in 2018/19, R2.7 billion in 2019/20 and R2.8 billion during 2020/21 financial year. The allocation makes provision for the delivery of quality housing through the Human Settlement Development Grant which is allocated an amount of R1.3 billion in 2018/19 financial year. Included in the allocation for 2018/19 is an amount of R55.0 million for Construction and Furnishing of Traditional Council Offices and a further R12.2 million for the Kingship Project.

Vote 12: Social Development

The budget allocated to the Department is R1.9 billion in 2018/19, R2.1 billion in 2019/20 and R2.2 billion during 2020/21 financial year. The allocation increase by 9.1 percent in 2018/19 and 5.6 percent in 2020/21 financial year. The allocation includes conditional grant allocations of R127.2 million in 2018/19 financial year. Included in the equitable share allocation is an amount of R23.5 million earmarked for expansion of Isibindi and Violence against woman Programs. The Province has prioritized the operationalization of Seshego Treatment Centre and Mtsetweni Children’s Home.

Vote 13: Sport, Arts and Culture

The total allocation of the department amounts to R472.2 million in 2018/19, R487.5 million in 2019/20 and R514.3 million in 2020/21 financial years. The allocation increases by a minimal 2.6 percent in 2018/19 due to once-off allocation in 2017/18 and 5.5 percent in 2020/21 financial year. An amount of R195.3 million is allocated for conditional grants in 2018/19 financial year. Included in the allocation for 2018/19 is an amount of R15.1 million for operationalization of libraries, celebration of national and historic days, Creativity Industry support and promotion & development of provincial artists.

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